The National Bank of Romania (BNR) forecast for this year show an accelerated pace of price growth, i.e. 3.2% in December 2018 and 2.7% in December 2017, central bank Governor Mugur Isarescu has said on Thursday, during the presentation of the Inflation Report. The previous forecast pointed to 1.9% inflation rate in 2017. “The exceeding […]

The National Bank of Romania (BNR) forecast for this year show an accelerated pace of price growth, i.e. 3.2% in December 2018 and 2.7% in December 2017, central bank Governor Mugur Isarescu has said on Thursday, during the presentation of the Inflation Report.

The previous forecast pointed to 1.9% inflation rate in 2017.

“The exceeding of the upper limit of the inflation target in the first part of 2018 is due mainly to the statistical effects associated to tax cuts at the beginning of 2017, due to the expected development and also to the accumulation of inflationary pressures. Calculated on the basis of steady taxes, the annual inflation rate will reach 3.3% at the end of this year, 3.1% at the end of next year and 2.9% at the end of projection. It’s hard to see it through when there are so many tax cuts, to put them aside and see what level will the inflation reach,” Isarescu said.

Trying to explain the current trend, the BNR Governor said: “We are facing pressures for RON’s depreciation, as the Hungarians and Poles face, the only currency in the region to register an appreciation is the Czech Krona. The trend is associated to the balance of payments. We have higher imports than exports, whereas the imports growth speed is higher than the one of exports. Although this deficit is partially covered by capital and European funds inflows, there is a problem,” Mugur Isarescu said.

]]>Romania, National Bank: The rise in energy prices to be seen in July inflationhttps://www.energyworldmag.com/romania-national-bank-rise-energy-prices-seen-july-inflation/
Tue, 08 Aug 2017 05:22:57 +0000https://www.energyworldmag.com/?p=40152

The latest inflation forecasts, to be formally released this Tuesday, have been revised upwards – largely driven by higher energy prices, as National Bank of Romania (BNR) Governor Mugur Isarescu announced. BNR sees the inflation increasing from 1.6 percent at the end of this year to 3.1 percent in 2018, driven by strong domestic demand. […]

The latest inflation forecasts, to be formally released this Tuesday, have been revised upwards – largely driven by higher energy prices, as National Bank of Romania (BNR) Governor Mugur Isarescu announced.

BNR sees the inflation increasing from 1.6 percent at the end of this year to 3.1 percent in 2018, driven by strong domestic demand.

“Price developments in Romania are under control for now, inflation is one of Europe’s lowest, but it is just as true that this period of negative inflation is ending,” Isarescu stated at end last week.

In its meeting in August 4, the BNR Board examined and approved the August 2017 Inflation Report.

“The new scenario of the projection reconfirms the prospects for a speed-up in inflation throughout the forecast interval. Compared to the previous Report, the rising path of the projected annual inflation rate was revised upwards over the entire forecast period, particularly in the short term, remaining, however, within the variation band of the target.

The uncertainties and risks associated with this outlook stem from the domestic and external environment. Domestically, they are compounded by the fiscal and income policy stance, also ahead of the envisaged budget revision,” a press release of the central bank reads.

According to Isarescu, the financial institution he is running for so many years, was paying more attention to actions taken by regional and European central banks than in the past.

Moreover, BNR’s head said on Friday he is concerned about the rising energy price on the stock exchange, after it was traded on OPCOM’s spot market (Next Day Market) and increased two or three times on Thursday, as the evolution of administered prices has become the highest uncertainty.